You’ve invested so much time thinking about everything you want in your new custom home, including an idea of what you’re willing to spend. During the construction of any new home, many different factors play a role in your new home’s final cost—both expected and unexpected. There’s the cost of land, materials, labor, luxury amenities and fixtures, and more.
If you’re worried about unforeseen costs and budget overages during your new home’s construction, the good news is there are several things you can do to avoid surprises, stay within your budget, and keep your custom home build on track. Keep reading and save this guide for later as a reference during your own custom home building experience.
Take Your Time with the Design Process
Every custom home starts with the pre-construction process, including an extensive design phase. To land on a final design that perfectly meets your needs and reflects your personal style, take the time to work alongside your builder to get the design just right. It may take a few revisions to the first plan you see, but the end result will be well worth it.
During the initial consultation meeting, you’ll sit down with your builder and discuss your family’s basic living needs and how your new home can fulfill them. Be sure to arrive at this initial consultation meeting with as much detail as you can share.
Things you should share with your builder when planning your custom home include:
- Your wishlist and must-have list
- Inspiration photos and examples of home designs you are looking for
- Examples of beautiful floor plans that you like
- Details about your new home’s proposed neighborhood or lot
Your builder will also assess your land to ensure the design suits the site like a glove. Land factors can affect the overall project cost, so pay close attention. No land yet? Don't worry—10X Builders has got your back in finding that perfect lot in Utah County.
Communicating these essentials upfront is the secret to minimizing changes later on and avoiding costly surprises during construction. All of these details help your builder finalize your new home’s design, create construction drawings, finalize the budget, and get the permitting process underway.
Get to Know your Construction Allowances
When planning your budget, it’s common to have a general idea of how much certain materials, finishes, or other items cost without knowing the exact amount. In the budget, we call these construction allowances—money that’s set aside for what you need, with some room for any unexpected pricing fluctuations in the market.
There are two types of construction allowances: material and installation. Material allowances come into play when certain finishes haven't been locked in during the contract—think plumbing fixtures or flooring. They're also a smart way to make room for any pricing fluctuations or if you decide to switch up materials down the road.
The second type, installation allowances, are all about flexibility too. They keep a budget cushion for any scope changes that might pop up due to material adjustments. For instance, if a new material requires specialized skills for installation, the budget will adjust accordingly and you’ll be all set. It's all about making the process smooth and adaptable as we build your dream home
Construction allowances can be a bit of a balancing act, which is why is essential that you fully understand your budget’s allowances and the general price range of whatever materials you want them to cover. If your allowance is too large, it might indicate a lack of industry know-how from your designer or contractor. On the flip side, if the allowance is too small, it could be a sneaky move by a contractor trying to undercut the competition with the lowest bid. So, setting the right allowance is key, and that's why it's crucial to research both your builder’s expertise and reputation and predicted market costs.
Keep Tabs on Change Orders
Next, let’s talk about change orders—they're like documented requests for material changes that could also impact cost and construction. Too many change orders can significantly shake up the budget, usually leading to an increase.
There are several reasons why you or your builder might need to implement a change order. Picture this: you stumble upon a super stylish finish you can't resist, like gorgeous tile or a fancy light fixture. Or maybe there's a shift in construction materials due to availability or changes in the market or supply chain. And sometimes, a change order comes into play because of a design mistake. No matter the reason, change orders mean added costs and could throw off the project timeline. So, keeping them to a minimum is the name of the game—let's protect that precious budget and keep things moving smoothly.
Choose A Reputable Builder
One of the most important things you can do to control costs in your new custom home build is to choose your builder very carefully. Your builder becomes your project partner—you should be able to 100% trust that you can depend on their expertise and industry knowledge. If you choose the wrong builder, you could end up with a poorly planned design, resulting in a mishandled budget or confusing project timeline. With so much time and money going into your new dream home, hiring the best builder for your project is key.
To find the right builder, interview several and look for good qualities you need in your home builder. Ask about their project management and communication styles, how their custom home building process works, and their full list of services. Know what they do in-house versus what work they hire contractors for, and who their contractors are. Find builders with an easy-to-access portfolio of beautiful past projects, each paired with happy clients and testimonials.
Hire an Expert in Design-Build
To make your home building experience even smoother, select a builder who uses the design-build method. Unlike the dated design-bid-build method, your design-builder serves as the architect, designer, and project manager, ensuring accuracy right from the very beginning. Meaning you won't waste time on suspiciously low bids or generic designs. This sets the stage for a tailor-made experience that keeps your project and budget on track and on time.
Unlike the dated design-bid-build process, your design-build team dedicates more time to understanding your desires. They'll get to know the materials and designs you love for your custom home, creating a comprehensive and detailed price that leaves no room for guesswork. Every aspect, from add-ons to inclusions, will be transparently laid out in your home’s finalized plans.
Controlling Costs for your Utah County Custom Home
We take your dream and your investment seriously at 10X Builders. We understand the importance of staying on budget and ensuring your custom home project becomes a stress-free celebration of your dream home on moving day. Together, we'll navigate any potential budget bumps and make sure you get a masterpiece that aligns perfectly with your vision and your bottom line.
Whether you’re looking to build a personal desert oasis or your own alpine retreat, 10X Builders has the expertise and experience to help guide you through the process and make it happen. Let’s discuss your vision today and create the home of your dreams.
